BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 574|
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UNFINISHED BUSINESS
Bill No: SB 574
Author: Dunn (D), et al
Amended: 7/13/99
Vote: 27
SENATE HOUSING & COMM. DEV. COMMITTEE : 5-1, 4/19/99
AYES: Alarcon, Bowen, Costa, Escutia, Vasconcellos
NOES: Monteith
NOT VOTING: Johannessen
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 28-10, 5/25/99
AYES: Alarcon, Alpert, Baca, Bowen, Burton, Chesbro,
Costa, Dunn, Escutia, Figueroa, Hayden, Hughes,
Johannessen, Johnston, Karnette, Kelley, McPherson,
Morrow, Murray, O'Connell, Ortiz, Perata, Polanco,
Schiff, Sher, Solis, Speier, Vasconcellos
NOES: Brulte, Knight, Leslie, Lewis, Monteith, Mountjoy,
Peace, Poochigian, Rainey, Wright
NOT VOTING: Haynes, Johnson
ASSEMBLY FLOOR : 69-10, 8/23/99 - See last page for vote
SUBJECT : Mobilehome Park Purchase Fund
SOURCE : Department of Housing and Community Development
DIGEST : This bill expands the Mobilehome Park Resident
Ownership Program to allow qualified nonprofit housing
sponsors and local public entities to use the program to
CONTINUED
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fund mobilehome park conversions.
Assembly Amendments (a) add coauthors, (b) make minor,
technical changes, (c) provide that funds shall not be used
to relieve a park owner of responsibility for covering the
costs of mitigating impacts of a park closure, and (d)
require the local entity purchasing the mobilehome park to
transfer the park to a nonprofit organization that has
converted, or plans to convert, the park to resident
ownership within three years.
ANALYSIS : Mobilehome residents want to purchase their
mobilehome parks to avoid continuous rent increases, and
park closures and displacements. Residents can also
participate in developing park rules, regulations, and
policies.
Enacted in 1984, the Mobilehome Park Resident Ownership
Program (MPROP) provides loans to residential organizations
to finance mobilehome park conversion costs, and to
low-income mobilehome park residents to help them purchase
their spaces (SB 2240, Seymour, 1984). MPROP has funded
approximately $28.5 million towards the conversion of 51
mobilehome parks.
MPROP is funded by a $5 annual license fee surcharge and
revenues from loan repayments. Currently, $9 million is
available to finance park conversions.
State officials say the demand for MPROP funds have
decreased and they want to make the funds available for
nonprofit housing providers to convert and preserve
mobilehome parks that are at risk of closing.
This bill expands the Mobilehome Park Resident Ownership
Program to allow qualified nonprofit housing sponsors and
local public entities to use the program to fund mobilehome
park conversions. At least 30% of the spaces in a
mobilehome park must be for mobilehomes that are owned by
low-income residents.
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When loans are made to a qualified nonprofit housing
sponsor or a local public entity, this bill requires:
1.Resident participation in the conversion and management
of the park.
2.Recordation of a regulatory agreement that limits
occupancy, rents, and park operations for the term of the
loan.
This bill also makes the following changes to the program:
1.Requires the Department of Housing and Community
Development (HCD) to give priority to applications for
resident-owned parks.
2. Allows funds to be used for relocating a mobilehome park
to a more suitable site within the same jurisdiction if
HCD determines the cost to relocate is a more prudent
expenditure of funds than the cost of repetitive repairs
to the existing park.
3.Defines "qualified nonprofit housing sponsor" to mean a
nonprofit public benefit corporation.
Comments :
1.Preserving at-risk housing . As mobilehome parks age,
under ground utilities, roadways, and other
infrastructure deteriorate. Owners don't have the
financing or incentive to upgrade their parks because
there are pressures to convert to other land uses such as
commercial shopping centers or higher cost residential
uses. But these parks provide housing for lower income
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individuals and families and the residents don't have the
financial ability to move to another park. Also, newer
parks won't accept older mobilehomes and these people
have no place to go. This bill provides a way to
preserve mobilehome parks for affordable housing.
2.Helping residents that are unable to help themselves .
MPROP is an important tool to maintain affordable
housing. Mobilehome park residents are able to borrow
money from the fund to purchase parks that may be closing
but residents may not have the experience or
qualifications to complete the complicated conversion
process or to manage the park after it converts. This
bill opens the program to nonprofit organizations and
local governments by allowing them to use the funds to
preserve mobilehome parks as affordable housing.
3.Competing for the same dollars . MPROP is the only state
housing program available to lower income mobilehome park
residents that want to convert their mobilehome park to
an ownership park. The program provides 3% simple
interest short-term loans for costs of park ownership
conversions, and long-term loans up to 30 years for
individual loans. The funds are limited and sometimes
there are more applications than available funds. This
bill allows nonprofit housing providers to compete for
MPROP funds to convert mobilehome parks.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/23/99)
Department of Housing and Community Development (source)
California Rural Legal Assistance Foundation
Golden State Mobilehome Owners League
Western Center on Law and Poverty
Department of Finance
League of California Cities
California Redevelopment Association
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JERICHO
California Mobilehome Resource and Action Association
Rural Communities
County of Santa Cruz
ASSEMBLY FLOOR : 69-10, 8/23/99
AYES: Alquist, Aroner, Battin, Bock, Brewer, Briggs,
Calderon, Campbell, Cardenas, Cardoza, Cedillo, Corbett,
Correa, Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra,
Firebaugh, Florez, Floyd, Gallegos, Granlund, Havice,
Hertzberg, Honda, House, Jackson, Kaloogian, Keeley,
Knox, Kuehl, Leach, Lempert, Leonard, Longville,
Lowenthal, Machado, Maddox, Maldonado, Mazzoni,
McClintock, Migden, Nakano, Olberg, Oller, Rod Pacheco,
Papan, Reyes, Romero, Runner, Scott, Shelley, Soto,
Steinberg, Strickland, Strom-Martin, Thomson, Torlakson,
Vincent, Washington, Wayne, Wesson, Wiggins, Wildman,
Wright, Zettel, Villaraigosa
NOES: Aanestad, Ackerman, Baldwin, Bates, Baugh, Frusetta,
Margett, Robert Pacheco, Pescetti, Thompson
NOT VOTING: Ashburn
NC:jk 8/23/99 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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